US Presidential Election 2024: Mazagon Dock, BEL to HAL – is it wise to buy defense stocks today?

2024 US Presidential Election: The outcome of the US presidential election would have a significant impact on Indian Stock Exchange. Conformable Exchange estimates, in this bitterly fought close election, Donald Trump and Kamala Harris are expected to modernize the US military and increase the country’s defense budget. This can fuel the defense spending of developing nations like India. Therefore, buying defense stocks ahead of the US presidential election results can be a good bet.

Is it wise to buy defensive stocks?

Advising stock investors to look at defensive stocks before US presidential election As a result, VLA Ambala, co-founder of Stock Market Today said, “According to my analysis, investing in defense stocks at this time could prove profitable. Donald Trump has historically prioritized the modernization of the US military. Major defense contractors such as Lockheed Martin, Raytheon Technologies, Northrop Grumman and General Dynamics could see significant benefits if it returns to power, which may act as a tailwind for India’s defense sector.”

Pravesh Gour, senior technical analyst at Swastika Investment, said: “It is critical to consider the possible effects of the US presidential election on India-US ties and in turn on the Indian military industry when considering the purchase of Indian defense actions. The outcome of the US presidential election may have a favorable or unfavorable effect on India’s military industry and consequently on the performance of Indian defense stocks Regardless of US policy changes, the Indian military industry has a strong track record Although legislative changes may occur under a new US administration, India’s military industry is fueled by both domestic demand and strategic alliances with other nations.

“India’s defense budget has grown to ₹6,21,940 crore, representing 12.9% of the total budget for FY 2024-25. The sector also recorded defense exports of ₹21,083 crore in FY 2023-24, a growth of 32.5%, highlighting our country’s demand for security and transition from a defense importer to a key player in the global supply chain. Amid these developments, companies such as Hindustan Aeronautics Limited, Bharat Electronics Limited, Bharat Dynamics Limited and Cochin Shipyard could generate investor interest,” added VLA Ambala.

Defense stocks to buy today

Asked about stocks to buy ahead of US presidential election results, VLA Ambala said, “Defense companies Astra Microwave Products, Rossell India Limited and Data Patterns (India) Ltd could add value to investment portfolios. Investors can also consider defense ETFs such as DFND for diversification. They believe a potential Trump victory could support demand for global defense companies and allied contracts, creating new investment opportunities for domestic investors.

“Major companies with strong fundamentals such as Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL) are likely to continue to do well,” said Pravesh Gour of Swastika Investmart.

Disclaimer: The opinions and recommendations presented in this article are those of the individual analysts. These do not represent the views of Mint. We advise investors to consult certified experts before making any investment decisions.